USDCHF fell to a new low of the year in February so market remains in bearish mode as long as 0.9080 swing high is not breached; but the question is for how long. We are looking at an ending diagonal in wave C that suggests a coming bullish reversal sometime this year, most likely in the second part of 2014. On the chart we are tracking wave (5), final leg in the pattern that may find a support at 0.8450-0.8550 area. A rise back above 0.9080 would suggest a bullish turning point.
USDCHF Daily Elliott Wave Analysis
USDCHF Four Hour
USDCHF has turned nicely to the downside since Friday, clearly in impulsive manner. Notice that market also retraced back to the area of wave B swing low after a broken support line of an upward channel. That’s a very strong and important evidence for a trend change, thus it suggests that top has been formed at 0.8951 and that market will continue to the downside after any short-term corrective bounce. Ideally we will see a wave 2 retracement back to 0.8870/90 where broken support line may not become a resistance.
USDCHF 4h Elliott Wave Analysis
Do you like our analysis? Try 1 month of full service just for 1€ >> Click Here
Invitation: Free Elliott Wave Live Analysis Webinar | Friday, March 11 2014 12:00 GMT | Register Here
